Impact of Narcissistic Leaders on Behavior in Firms

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The impact of narcissistic leaders on firm behavior can be profound and far-reaching, influencing various aspects of organizational culture, employee dynamics, and overall performance. Narcissistic leaders, characterized by grandiosity, self-importance, and a lack of empathy, often prioritize their needs and desires above those of the organization and its employees.

When studying the effects on psychologists of individuals with interpersonal dominance, it can be said that such people have a personal striving for power. Therefore, they can become aggressive and try to control others around them.

From the biological perspective, the studies are consistent with the idea that interpersonal dominance may become a cause of differences between colleagues. Moreover, high testosterone levels in humans are due to higher dominance scores.

In some people, dominance can be associated with authority and power. Authority and power can be achieved using hard work.

Still, dominant behavior can also help leave others behind, making way for success and establishing power. In contrast, dominance can help to show authority and power.

Many scholars have studied and written many research papers about the relationship between narcissism and dominance. Most narcissists tend to concentrate more on getting ahead than others and do not show concern over getting along with the workforce.

Narcissists can work hard and manage to work in a competitive environment. Narcissists seek a social place and approval by being powerful and competent rather than friendly.

The processes through which narcissists try to attain their ideal self are superiority and dominance. Many scholars have studied that narcissists are in search of social groups where they can dominate and have others praise them.

Strategic Decision Processes

A strategic decision can be defined as one that is highly significant in terms of the actions taken, the resources applied, and the precedents set.

The basis for strategic decision-making is a strategic process, the basic steps. Narcissistic Leaders will likely make centralized, quick, and unfortunate non-comprehensive decisions.


Organizational structures set the boundaries and the concept in which strategic decisions are made. Moreover, most decisions are made by the top management team. The decision-making process can be structured to make it participative, based on group interaction.

The decision-making process can be on a hierarchical structure based on structural power. However, many factors affect decision-making, such as the political theory of business firms; for example, maintaining organizations are coalitions of people with competing interests, and these competing interests create conflict.

However, decisions are based on the desires and choices of the most powerful people, as foreign policy and business research show.

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